opportunities for industrial efficiency in the commonwealth
TRANSCRIPT
Opportunities for Industrial
Efficiency in the Commonwealth
Virginia Energy Efficiency Council
The Alliance for Industrial Efficiency
Siemens
WGL Energy
February 28, 2017
A broad coalition of businesses, utilities, local
governments, universities, and nonprofits working to
assess and support programs, innovation, best practices
and policies that advance energy efficiency in Virginia
while providing a forum for stakeholder interaction.
Who is VAEEC?
David SteinerPresident, D+R International
Board Chair, Virginia Energy Efficiency Council
Moderator
David Steiner serves as Chair of the Virginia Energy Efficiency Council. He is
President of D+R International, Ltd., which has been instrumental in the
support of innovative program design for energy efficiency adoption over its
30-year history. The company focuses on high quality data that brings
greater understanding of energy efficiency opportunities and ultimately
capture of energy savings. David also serves on the Town of Vienna’s
Community Enhancement Commission.
Speakers
Jennifer KeferVice President, David Gardiner & Associates
Executive Director, Alliance for Industrial Efficiency
Dalia El TawySenior Marketing & Business Development Manager,
Siemens
Charles MillerManager, Distributed Generation Asset Development,
WGL Energy
Agenda
➔ Overview of CHP/WHP
◆ Importance of the industrial sector
◆ Benefits of CHP
◆ Scale of the opportunity and state of the market
➔ Examples of CHP/WHP
➔ Virginia: programs and barriers
➔ Examples of CHP elsewhere
➔ What more needs to be done to get CHP/WHP in Virginia
Jennifer Kefer
Executive Director
Alliance for Industrial Efficiency
The Alliance for Industrial Efficiency promotes state and
federal policies to support U.S. manufacturing
competitiveness through enhanced industrial efficiency.
Our diverse coalition of businesses, labor groups, and non-
profits work to improve energy efficiency in America’s
industrial sector. The Alliance is a project of David Gardiner
& Associates.
About the Alliance
Agenda
➔ Importance of the industrial sector
➔ Benefits of CHP
➔ Scale of the opportunity and state of the market
Virginia Energy Use by Sector
Source: EIA 2016
Energy Efficiency Keeps Bills Down
Source: ACEEE 2014
Industrial Efficiency Is the Cheapest
Source of Efficiency
Source: Aden et al. 2013
CHP Is an Efficient Way to Produce Power
60%
Waste
Heat
7% Line
Loss
100%
Fuel
33%
Delivered
Electricity
CHP Benefits:
1. Manufacturers
2. The Public
3. Utilities
Current CHP Projects
Source: DOE CHP Installation Database, March 2014
ArcelorMittal (Indiana)
• 90 MW energy recovery and
reuse 504 boiler project
• $63.2 million total project cost
• $31.6 million DOE grant
• $20 million in annual energy
savings
• Payback (with DOE grant): 1.58
years
• Provides 20% of energy needs
Hood Dairy (Winchester, VA)
• 15-MW microgrid,
including CHP
• 4 year payback period
(ongoing)
• 30% emissions
reduction
• Expanding to provide
refrigeration
CHP Generating Capacity in the Mid-
Atlantic
Source: DOE CHP Installation Database,
December 2015
U.S CHP Technical Potential
Source: DOE 2016
GW
CHP Technical Potential (Virginia)M
W
Source: DOE 2016
1,689 MW
4,308 MW
VA CHP Technical Potential vs. Deployment
Source: DOE 2016
Investing in CHP and Industrial Efficiency
Can…
• Save Virginia businesses $4.1 billion (2016-2030) in avoided
electricity costs;
• Save 6.6-million megawatt-hours of electricity in 2030;
• Reduce annual CO2 emissions in the state by 2.6-million tons
in 2030; and
• Achieve about 31% of Virginia’s emission reductions called for
under EPA’s Clean Power Plan (CPP).
Dalia El Tawy
Senior Marketing & Business Development Manager
Siemens
A Comprehensive Portfolio of Advanced
Technologies for CHP Applications
CHP Projects: Key Selection Criteria
▪ Meeting thermal and power load requirements
▪ Reducing energy costs
▪ Availability and reliability
▪ Lower emissions
▪ Fuel flexibility
▪ Enhanced control
▪ Financing solutions
▪ Life-cycle support
Examples & case-studies
CHP projects:
applications & technologies
CHP projects in industrial applications
Pulp & paper – example 1
Wisaforest pulp & paper mill
Pietarsaari, Finland CHP
plant
▪ One of largest 100% biomass-
fired power plants in the world
▪ Supplies electricity and process
steam to the mill’s operations
▪ Also, provides district heating to
the surrounding town of
Pietarsaari
▪ Prime mover: SST-800 steam
turbine
▪ Power output: 143 MW
CHP projects in industrial applications
Pulp & paper – example 2
Klabin pulp & paper factory
Ortigueria, Brazil CHP Plant
▪ Two of the largest steam turbines used in
the pulp and paper industry worldwide
▪ Highly specific steam turbines integrated
into a customized process cycle
▪ Uniquely flexible plant due to 2
production lines and ability to produce 2
types of fiber simultaneously
▪ Prime mover: 2 SST-800 steam turbines
▪ Power output: 270 MW
▪ 150 MW fed into the national power grid
CHP projects in industrial applications
Breweries and distilleries
CHP plant at a brewery in London, Canada
Industrial 501-KB7 Aeroderivative Gas
Turbine
4.0 – 6.6 MW(e)
CHP plant installed in a distillery in Scotland,
UK
SGT-100 Industrial Gas Turbine
5.1 - 5.4 MW (e)
CHP projects in industrial applications
Chemicals and waste-water treatment
CHP project at a chemical plant in Infracor
Marl, Germany
1 x SGT-800 Gas Turbine & 1 x SST-300
Steam Turbine 60 MW(e)
CHP project installed in a wastewater
ttreatment facility in Psyttalia, Greece
SGT-400 Gas Turbine 12.9 MW(e)
CHP in Virginia:
current status and
areas for improvement
CHP in Virginia
Current status and areas for improvement
▪ CHP incentives▪ Need for additional state policies/programs that provide incentives for CHP
deployment
▪ Energy savings from CHP▪ State policies designed to acquire energy savings from CHP, similar to
other efficiency resources, could help in encouraging additional CHP installations
▪ Interconnection standards▪ Additional specifics with regards to fuels and technologies could enhance
the standards and support CHP deployment
Charles Miller
Manager, Distributed Generation Asset Development
WLG Energy
Examples of Where CHP Programs are Working
Efforts in WGL Territory
In February 2016 WGL Petitioned for a rate case that would support deployment of CHP in the District of Columbia
Outcome of petition is expected in March or April
Allows Negotiated rates for firm and interruptible service
1. Floor of Firm = Tariff rate for interruptible
2. Interruptible Rate has no floor3. Would not require commission
approval of negotiated rates4. Ultimately may lead to a published CHP
tariff rate
Maryland has published rate and policy for gas fired generation stations but this is more directed to commercial generation
Restriction is greater than 373KW in size and does not include grid protection
This effectively limits application to “In Front of the Meter” applications
BGE has petitioned to incorporate “Micro-grid Solutions” into a rate base.
Concerns with this approach may limit effective competition for the rate base1) Third Party Ownership and PPA2) Public Micro-grid innovation3) Technology evolution
Efforts in WGL Territory
Efforts in WGL Territory
Virginia currently enjoys extremely competitive pricing for both gas and electric
Electric service is exceptionally low comparative to surrounding states
Creates significant challenges for CHP deployment
Will most likely require state programs that affect the “Public Good” such as the NYSERDA program in NY
Based on already reduced costs, Gas utilities may have difficulty differentiating between Large Commercial applications and CHP installations
Current WGL Tariff rates in VA can theoretically support CHP applications however project is extremely sensitive to commodity fluctuations
VA Modular CHP System
System ensures facility resiliency through black start capability and redundant heating and cooling systems
Overall reduction in carbon footprint by nearly 50% fro grid electric
Reduced life cycle cost of operations with significant efficiency improvement over DX
Ability to predict operations cost and incorporate strategies to mitigate any fuel risk
Allows for secure operations during system outages –Designate as place of refuge
System benefits reminder
Representative Project: Commodity Comparison
DX Commodity Cost escalated at 3% per yearWGL Commodity Operations cost escalated at 3% per yearWGL CHP Commodity gas escalated at 1% per yearAll electric escalated at 3% per year
Other Ways to Work the System
Hood Dairy represents an alternative approach that overcomes the traditional limitations of CHP deployment by focusing on “Value Stacking” out side of only thermal and electric costs/savings.
By incorporating market dynamics into the overall value equation for either a direct owner or for a third party ownership model, additional value can be obtained and monetized to overcome the low commodity savings challenge in the region
ZF Energy and Rockwell Automation have teamed together for the Hood Dairy Project to validate the value stacking approach
Type your questions by clicking the
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Contact information
Dalia El Tawy
Jennifer [email protected]
Charles Miller [email protected]
Annie [email protected]
ADDITIONAL SLIDES
Mid-Atlantic Industrial CHP Technical Potential
(8,348 MW @ 5,943 sites)
Source: DOE March 2016
Mid-Atlantic Commercial CHP Technical Potential
(9,884 MW @ 22,868 sites)
Source: DOE March 2016
Commercial & Industrial CHP Potential
(Virginia)
Industrial On-Site Technical
Potential
Commercial On-Site Technical
Potential
Source: DOE 2016